Article source: Felix
Author: AlΞx Wacy, crypto researcher
Translated by: Felix, PANews
In previous bull markets, all altcoins do not surge simultaneously. This refers not to a 10-30% increase, but rather increases of 300-700% or even higher. These surges form the entire bull market cycle.
Funds continuously flow between different tokens, which is why altcoin season lasts not just a week, but for several months. The past fund flow situation is as follows:
BTC > ETH > High market cap tokens > Low market cap tokens > BTC...
But this model is now outdated, and the current fund flow cycle is more nuanced. Each phase will be discussed in detail below.
Phase One
BTC remains at the forefront as always. Market giants lead the crypto trend, but once BTC stops rising (or its growth slows), other tokens will 'take the baton'.
Phase Two
SOL, as a standout among altcoins in this cycle, is beginning to rise. Some major altcoins may follow suit, but they are currently underperforming (we are in this stage now).
Phase Three
The following tokens may 'take the baton' from SOL's rise:
Major memecoins: DOGE, SHIB, PEPE, WIF, BONK, POPCAT
Major altcoins: RENDER, SUI, APT, LTC, etc.
Some tokens may underperform or explode later.
Phase Four
The hottest narratives dominate this phase. Memecoins, AI, RWA, and some combinations of these narratives, such as AI memes and AI x DePIN, etc.
Some narratives will be skipped, and players will be left in a bind. Therefore, choose wisely.
Phase Five
At this stage, low market cap tokens begin to rise rapidly, even increasing hourly. This stage is the best trading opportunity for robust memecoins and projects with good fundamentals. Choose the best-performing tokens, as market surges and drops often occur.
Phase Six
Funds flow back to BTC. As the market matures, these cycles become harder to predict. Don't waste this bull market; you still have time to make life-changing money in the next 5-9 months.
But remember one important thing, you can accumulate wealth in two ways:
Long-term holding of appreciating tokens
Trading with tokens that rise faster
Historically, less than 1% of those who attempt the second method achieve long-term success.
Therefore, most of your funds should still hold long positions, and if you want to seize every surge opportunity, you should use spare funds (small positions).
Related reading: Why did Memecoins lead the way in this bull market? A discussion on the new logic of asset sector rotation.
